Can Financials Soar If Bonds Yield Rise Above 3%?

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

Financials have been down and out recently but the last two days they showed some resiliency in the face of broader selling. 

The Bank Index looks set to turn higher.

Widening out the picture, since 2016, the rising rates shown on the $TNX chart have created sudden moves on the $DJUSBK index.

I posted an article in Don't Ignore This Chart Friday afternoon with this price chart of the TLT. If the TLT price is going to break down, sending yields higher, perhaps we can expect another surge in the US financial stocks.

I recorded the first instalment of the new StockCharts TV live show The Final Bar with Greg Schnell. You can follow the link to check out a 30 minute show that outlines how set up everything is for reversal right now.

Good trading,
Greg Schnell, CMT, MFTA

Greg Schnell
About the author: , CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More